The Spring Budget and Small Businesses – what do we know?

The Spring Budget and Small Businesses – what do we know?

We wanted to update you on the recent announcements made in the Chancellor's Spring Budget 2024, particularly those that impact small businesses like yours.

The Chancellor has indeed laid out several measures, but opinions within the small business community are mixed.

While there have been some positive moves noted, such as the rise in the VAT threshold and the additional National Insurance cut for the self-employed, many experts feel that the budget lacked comprehensive support for small business growth. Emma Jones, CBE, founder and CEO of Enterprise Nation, remarked that the budget seemed more geared towards a general election rather than fostering small business expansion. She emphasised the importance of addressing issues like late payments, which hinder growth prospects for small enterprises.

    Others echoed similar sentiments, stating that while some giveaways were welcomed, more support is needed, especially in light of rising inflation. Many have highlighted concerns over energy costs and the lack of reduction in the industrial energy cap, which continues to burden UK businesses.

James Robson, CEO of FundOnion, expressed disappointment in what he perceived as insufficient support for SMEs. He emphasised the necessity of a Chancellor who actively promotes long-term economic growth and innovation, providing tangible relief measures and facilitating easier access to alternative finance options.

Despite widespread calls, certain crucial aspects such as VAT-free shopping for tourists and reforms to the Apprenticeship Levy were not addressed. Additionally, the issue of business rates remains unresolved.

In terms of specific changes affecting small businesses, the rise in the VAT registration threshold to £90,000 was highlighted. However, experts warn that while it's a step in the right direction, it might not be sufficient to alleviate inflationary pressures.

Furthermore, the announcement of a further National Insurance cut for the self-employed, reducing the main rate from 8% to 6%, has been noted. The Treasury estimates this will provide an additional £350 annually for self-employed individuals.

As SME specialists, we are dedicated to supporting our clients through these changes by providing tailored shipping solutions that suit your specific needs. Whether it's navigating potential increases in administrative burdens due to changes in VAT thresholds or ensuring smooth transportation of goods amidst fluctuating economic conditions, our expertise and personalised approach enable us to adapt and optimise shipping strategies accordingly. With our commitment to reliability, efficiency, and customer satisfaction, you can trust us to be your dependable partner in navigating the evolving landscape of business operations.

Get in touch with the team to explore your options on 0203 600 6006 //[email protected] // www.londoneasttransport.co.uk   Part of the InXpress Network